9th Aug 2005 07:00
Blueheath Holdings PLC09 August 2005 Immediate Release 9 August 2005 Blueheath Holdings plc ("Blueheath" or the "Company") Business Update Blueheath is a national delivered wholesaler using sophisticated, proprietarytechnology to offer a substantial cost advantage over established players in the£16.4bn grocery wholesale sector. The Company today provides the followingbusiness update. Contract Wins Blueheath is today delighted to announce the following new contract wins: * Vue Cinemas, the UK's largest multiplex cinema operator with 54 outlets - contract to supply all food service products. * Motorway service station operator - contract to supply full range of impulse and convenience products. * Northcliffe Retail, the retail division of Northcliffe Newspapers Group - appointed as nominated supplier for the South East franchise network with an initial 14 outlets, expected to build over time to 50 outlets. * 9 site forecourt and convenience chain in the South * Star services 5 site forecourt chain in the South East. The pace and scale of account wins remains in line with management expectations,although it will as usual take some time until all the new accounts are fullyoperational with roll outs beginning in August and September. Integration of CTM wholesale Following the acquisition in April this year of CTM Wholesale Limited ("CTM"),Blueheath is also pleased to report that the integration continues to progresswell: * Turnover is ahead of expectations with no material customer losses. * Blueheath stock management technology is now operational at the Wrexham site and is on track in delivering the expected benefits from reducing CTM stock towards Blueheath's normal level. * Steady progress continues to be made in delivering the expected cost synergies. Current Trading and Operations The Group is continuing to make good progress both organically and through itstargeted acquisition strategy. The Directors are pleased with the pace of newaccounts wins which remains in line with management expectations. Once won,however, as has previously been highlighted by the Company, the pace of the rollout of outlets can be out of the Company's control and some accounts have beenrolling out more slowly that originally expected. The Company will continue tomonitor this situation and update the market as appropriate. Operationally, the Company continues to perform at the upper level ofexpectations in terms of quality and reliability of service. Commenting on the results and prospects, Douglas Gurr, Chief Executive, said: "Our new accounts emphasise our commitment to the leisure, petrol forecourt andfood services sectors and further strengthen our expertise in these areas.Equally pleasing is the initial integration shown at CTM which demonstrates thevalue that we can generate from carefully selected potential acquisitions." For further details: Blueheath Holdings plcDouglas Gurr, Chief Executive Tel: 020 7689 2455Simon Mindham, Finance Director Tel: 020 7689 2464 Buchanan CommunicationsMark Edwards / Nicola Cronk / James Strong Tel: 020 7466 5000 Notes to editors: Blueheath is a wholesaler of groceries to convenience stores in the £16.4billion UK grocery wholesale sector. The Group sells and arranges thedistribution of approximately 3,100, primarily ambient, product lines to over1,600 independent and multiple retail and leisure outlets within the UK.Blueheath's innovative technology-driven business model is founded on the basicprinciples of stripping out unnecessary supply chain costs and overheads andpassing on financial and operational benefits to customers. This enablesBlueheath to offer customers a wholesale delivery service of groceries at closeto Cash & Carry prices. Blueheath achieves cost savings in three ways: 1. Operating on low stock levels through the use of sophisticated, proprietary stock prediction technology. 2. Using spare distribution capacity through its partnership with British Bakeries Ltd and other operators. 3. The extensive use of process automation to minimise administration costs. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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